Global asset manager Franklin Templeton has issued two exchange-traded funds (ETFs) classified under Article 8 of Europe’s Sustainable Finance Disclosure Regulation (SFDR). The Franklin S&P 500 Screened UCITS ETF will invest in large and mid-capitalisation stocks in the US, while the Franklin S&P World Screened UCITS ETF will invest globally. The new ETFs will track the S&P 500 Guarded Index and the S&P Guarded World index, which offer a screened equity exposure with an enhanced ESG profile. The ETFs target a minimum 10% improvement in carbon intensity and a 10% minimum improvement in ESG rating versus their parent indices. “These new ETFs offer a cost-efficient and transparent way to access core equity exposures with enhanced ESG profiles and reduced carbon footprint, keeping a tight tracking to traditional core indices,” said Caroline Baron, Head of ETF Distribution, EMEA at Franklin Templeton. Lotfi Ladjemi, Vice President, ETF Distribution, added that the ETFs “align with the growing investor focus on integrating ESG considerations without compromising on index performance”. In January, Morningstar Sustainalytics found that funds classified as Article 8 under SFDR had registered the highest inflows of 2024 in the final quarter of the year.
